MASTER FRANCHISE
The Ultimate Franchise Investment

Within the world of franchising, there exists a little-known opportunity that has the potential to turn into the most profitable franchise investment you can make and has the capability of providing a substantial lifetime income for you and your heirs. It is known as a Master Franchise or Area Representative Franchise.

It is simply the owning of the rights to develop a franchise system within a territory. This territory can be a metropolitan area, an entire state, several states or even a country.

The Master Franchisee assists the franchise company in developing the territory in exchange for a share in the royalty revenues and franchise fees that are generated from operations within that territory.

The Master Franchisee pays the franchisor a fee for these rights and must provide certain services to existing franchisees within the defined territory.

In building that territory, the Master Franchisee usually does not enter into agreements with the franchisees but rather facilitates the coming together of the franchisor and the franchisee.

Once the franchisee has entered into the franchise agreement, the Master Franchisee may aid the franchisee in site selection, build-out, equipment acquisition, training coordination and in opening, operating and insuring quality control.

For this ongoing service the franchisor pays the Master Franchisee a split in the royalties and franchise fees earned within the territory. This can represent up to one-half or more of the revenue stream earned by the franchisor within the territory.

With owning a Master Franchise you enjoy all the benefits of being a franchisor without the burden of having to develop a concept from scratch.

The franchisor has a proven track record, brand name, and a successful operating system. You basically become their partner in a territory. The franchisor provides you with valuable support, latest innovations and business experience.

How Fortunes Are Made

Royalty Income

Example:

Assume you purchased a territory from a franchise company at a pre-determined amount.

Your agreement with the franchisor is that you would receive 50% of each franchise fee and 50% of the royalty income.

Let’s assume that the franchise fee is $45,000 per unit and the royalty each unit pays is 6% of their gross sales. That means for each unit opened in your territory you would receive $22,500 (50% of the $45,000 franchise fee).

Let’s also assume that each unit opened in your territory has an average yearly gross sales volume of $1,000,000.

Each unit would pay a royalty of 6% of their gross sales, which is $60,000 per year.

You as the Master Franchisee would receive 50% of this amount which is $30,000 per unit per year.

If 10 to 100 units opened in your territory, your royalty income would be $300,000 to $3,000,000 per year.

Franchise Fee Income

In the explanation above if you received 50% of the franchise fee from each franchise unit sold in your Master Franchise territory you would have received an additional franchise fee income of $225,000 to $2,250,000.

Your income from franchise fees and royalties may be very substantial and could provide a lifetime income for you and your heirs.

(This example is for explanation purposes only and not a guarantee)

Building Equity

Once franchise units open in a Master Franchise territory, it can significantly increase the value of the Master Franchise. Also as other units open in other territories and the Franchise Company grows, a territory may become very valuable because others may wish to acquire it and could be sold for a considerable profit.